Create Initial Balance – A summary of the activity
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Initial balance entries are made when the installation is done for the first time. The financial year and period, account codes and finance books must be defined before the initial balances are entered. If the migration is done at the beginning of a financial year, you can enter all the closing balances of the previous year, as the initial balance for the selected year.
Transactions can be posted in the books of accounts even before the initial balance entries are posted. However, you cannot close the finance book at the end of the year without completing the initial balance entries. If the company transacts only in the base currency, the initial balance entry must be made for the first financial period defined for the company. If the parallel base currency is defined for the company at a later stage you would have to enter the initial balances in the parallel base currency from the financial period in which it was defined. The account balances for all the liabilities, asset and capital accounts must be entered if the initial balance entry is being made for the first financial period.
This activity gives you the facility to enter the initial balances in three different currencies if the account currency, base currency of the company and the parallel base currency are different. If the company requires its finance books to be maintained in the parallel base currency, the initial balance entry will be termed incomplete if you have not entered the balances in either of the currencies. Entering the initial balances for the parallel base currency depends on the installation parameter set for the parallel base currency.
This page allows you to select the finance book and the account group under which the account codes are available. Based on the account group selected the standard debit / credit identifiers are retrieved which could be changed if required. For a selected financial year and period you can enter the balance amounts in the base currency and parallel base currency of the company. You can also enter the balance amounts in the currency of the account or the currency of the finance book. This page provides you the facility to calculate the debit and credit totals of the amounts entered in the base currency and the parallel base currency for the account codes.
This page also provides you the facility to save the balance details temporarily till all the initial balances have been entered. Once the initial balances have been created you cannot modify any of its details or add initial balances for any of the account codes in the finance books. The status with respect to the initial balance is updated to “Completed”.
What you can do in this activity
Create initial balances for various finance books
Create initial balances in different currencies
Initial balances can be entered for a finance book till the final “Create” is executed. Transactions can be posted in a finance book even before the initial balance entries have been created for the finance books. However, a finance book cannot be closed without entering the initial balances.
Go to “Create Initial Balance” page.
Enter the necessary information.
Create initial balances for various finance books
Initial balances can be entered for various finance books. Based on every finance book selected, initial balances can be entered; these balances are saved temporarily until the final “Create” is executed.
Go to “Create Initial Balance” page.
Select the finance book.
Create initial balances in different currencies
Initial balances can be entered in three different currencies if the account currency is different from the base currency and the parallel base currency.
Go to “Create Initial Balance” page.
Enter the different amounts.
Balances entered for the accounts are saved temporarily till final “Create” is executed. Initial balances can be modified or new account balances can be added any number of times until then.
Go to “Create Initial Balance” page.
Enter the necessary information
Save it temporarily.
